Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Before granting the licences I wonder what assurances/evidence the government wanted to see to prove we are able to take this to production? Surely they wouldn't have been content with our word only?
If we assume we had to provide something more concrete, why hasn't the company updated the market?
Good morning addicknt, as you are aware this is my first mining share, but have been investing in oil and gas for decade's.
Usually when the permission is given to exploit the discovery.
The resource must be tested and an indicative amount must be registered.
This helps assist the jurisdiction to set the rates of tax and allow investment into the project.
They do have to show how it will be brought to fruition.
Usually with funding agreed.
Not always in place, but able to demonstrate it's available.
I have no idea what Ecuador required to get our explotation license, but I am a lot more comfortable now we have it.
Q, yes, me too.
However, given the importance of this development to the state of Ecuador and its highly political nature, you could reasonably assume the government would like to know we have the ability to deliver (or that we have a partner/buyer who can). Or maybe not? Perhaps they were so anxious to get this done before Lasso disappears they were happy with what we told them? Mind you, that would seem pretty reckless to me.
I believe we have given them the pathway to development.
I suspect we will get an RNS when we have finance firmly in place. JV or whatever Solgold have in mind.
I personally think that Chinese are pulling the strings behind the scenes to get these agreements done and they will eventually come out for a bid (or jv) once Scott comes out with his new mine plan.
I don't think the Ecuador Gov would do the following:
1. Agree 25 year mine licence
2. Agree to exploitation agreement with fine tuned T&C's
WITHOUT..... knowing the mine plan and projected revenue streams along with predicted start and end date of development and first exports.
I think Scott's already presented the new mine plan and would have had to present the finance plan too.
Ecuador gov want it moving pronto and would not be gamed by SOLG. Both parties would have to commit and show their hands.
Agreed.
Mining Minister: "We're entrusting you with a critical feature of our nations economy, which is going to cost up to 3bn dollars. Currently you only have lights-on money for the next 12 months. What are you doing about it? And sorry, as much as I love your endless presentations about first mover advantage and bakeries, I want some actual detail"
Fortissimo, what an incredible long wait for the announcements to be revealed! Or at least it feels like "for ever"! It seems obvious that some kind of a deal or deals have been made behind closed doors. GLA
Just rereading the Reuters story.
It makes it clear that Solgold have committed to invest 4.882 billion dollars during Cascabel's useful life.
We have funding on some level.
https://www.reuters.com/markets/commodities/ecuador-solgold-seal-deal-launch-nearly-5-bln-mining-project-2023-07-20/
Q, surely we MUST have given them some clue as to where the money's going to come from?
I'm really struggling to believe we signed-up on the basis of a wing and a prayer. It's time for the company to tell shareholders.
Quady, given that we are on track to fail to meet the commitments of the IPA which required us to invest several hundred million across Cascabel by the end of this year, do you really think that the Ecuadorian government believe SOLG has the capability to raise $4.8bn to develop the mine?
Capability aside, they will know that SOLG has no desire to build Cascabel, because our CEO has repeatedly stated we are not mine builders. I am sure that Scott has assured the Ecuadorians that they are not about to put their faith in a mining minnow to develop one of the most critically important assets Ecuador has to its name.
The government will want Cascabel in the hands of a major with deep pockets, that has a proven track record of mine building, and one who doesn't have a CEO that keeps telling people they have no intention of building a mine.
Good morning SharketMare, unless Reuters have this completely wrong.
We have agreed to invest 4.882 billion dollars during Cascabel's useful life.
This is what got us the explotation license.
Good morning SharketMare, unless Reuters have this completely wrong.
We have agreed to invest 4.882 billion dollars during Cascabel's useful life.
This is what got us the explotation license.
Surely Maxit et al need to issue themselves the 100m CGP shares at 16p first before revealing the mind plan and chinese (or another) bid or funding deal lol!
Now what could give them the basis or premise to issue 100m shares to their buddies on the cheap??? Oh ... hang on a moment... didn't Ecuador gov say they wanted $25m on commencement of construction???
The opportunities for all 'in the know' to make a bucket load out of this (and helps accept a lower offer) is obvious to all. Scott and co have already bagged a ridiculous amount at 17p.
Can't wait to see this unfold as there is no doubt about it in mind ... Alpala is changing hands soon and that would be the only reason the Ecuador gov would be signing off the red tape IMHO!
Scott will update the market on his mine plan soon enough but lets face it... it's a pointless update unless it's supported with sale process/SR outcome or both etc.
I've just agreed to buy the Albert Hall for £2.4 billion.
Any one lend me a tenner ?
Bit more to it than that Jezzoo.
I know in oil and gas you have to have funding available before you go to the construction stage or you don't get licenced.
I was unsure on mining, but the Reuters story seems to suggest it's similar.
Q, it must then be the world's best kept secret that SOLG has managed to access $4.8bn in funding. Come on, you're living on another planet if you seriously believe that to be the case.
No one believes SOLG will be building a mine at Cascabel, or hiring in civil engineers to do so on their behalf.
Good afternoon DinnerMoney.
If you are correct then Reuters have got it badly wrong.
Maybe Solgold have been raising finance in the background, and the Ecuadorian government is there as a guarantor if required.
Otherwise I cannot think how we got the explotation license.
DM - ministry statement is here (well, their press release, which I assume is the statement):
https://www.recursosyenergia.gob.ec/ministerio-de-energia-y-minas-suscribe-acta-de-negociacion-con-solgold-previo-a-la-firma-del-contrato-de-explotacion-minera-del-proyecto-cascabel/
"Durante la vida del proyecto se estima una inversión de USD 4.882 millones."
"During the life of the project, an investment of USD 4,882 million is estimated." (Google translation)
Good afternoon DinnerMoney, that's the bit I read.
Thought the RNS said we had the explotation license, but will take your word that it's not on SEDAR.
However it is normal to have financing in place to get the equivalent license in oil and gas.
"such technical solvency and prestige as Solgold". Is there another Solgold?
"Currently, the project has the corresponding environmental and water permits". Not according to the company.
"Construction will begin in 2025". Hmm.
Why do we always have so many contradictions and such a lack of clarity? Is it any wonder the share price is so low?
DM, painful it most certainly is. I've never understood why this company is, and always has been, incapable of providing clear and coherent messaging. Is there something unique about it that makes the task too difficult? I don't think so.
Last week we had two pieces of excellent news, which were milestones in our progress. And yet here we are with more unanswered questions and a government putting out press releases that don't tally with what we've been told. How is that even possible? Don't they coordinate these things? Apparently we've got all necessary permits and licences - but we haven't. We've committed to nearly 5bn of investment and yet we know we don't have it and there's no way on gods earth we can raise that money on our own. The whole thing is totally confusing.
Please don't think I'm giving up on the project because I'm not and I can only assume we're much closer to resolving these issues than some of us may think.
It does surprise me why the Japanese or even likes of Elon Musk and co don't take significant investment stakes in Copper / PM mines as supports their business and secures the streams they need when rest of competition could be struggling for supply. We've seen major issues post covid with car firms suffering due to chip supplies. Same thing is looming for car firms in 2027/2028 when copper likely twice todays price levels.
Good afternoon addicknt.
May I suggest that the stories are not conflicting.
Maybe we have the funding through a joint venture.
It would meet the requirements of all statements.
We are not builder's but our partner's are.
We have the finance sorted, so we can obtain the explotation license.
We have the permits and licenses as soon as it's made public.
Just a thought.